The latest estimate of U.S. insured losses from Hurricane Isaac falls between $1 billion and $2 billion, says Risk Management Solutions (RMS).
This includes the possibility of small losses caused by storm surge paid out by wind-only policies, but excludes rainfall-driven flood and National Flood Insurance Program (NFIP) losses.
“We've formulated our estimate using a blend of modeling tools, combined with our assessment of key areas of uncertainty and non-modeled losses—excluding flood,” says Christine Ziehmann, director of Model Product Management at RMS, in a statement. “The width of the range reflects some remaining uncertainties, including the variability and uncertainty around loss at very low wind speeds—mostly tropical storm strength—and, in particular, the uncertainty around coverage leakage of surge related losses into wind-only loss payments.”
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